The present invention relates to the field of computer databases. In particular, the invention relates to a software interface and database that tracks and aggregates all Securities and Exchange Commission (SEC) “shelf” registration and all capital market activity related to those shelf registrations.
Shelf registration refers to the registration of securities, under SEC rule 415, that are not to be presently offered for sale. SEC rule 415 allows issuers to register securities (such as Equity, Fixed Income, and Universal) for an offering to be made on a continuous or delayed basis. That is, the securities are being registered so they can be placed “on the shelf” until the time comes for issuance. The shelf registrations may be primary or secondary or both.
Issuers use a two year window to speculate on capital markets activity, and to determine the types of securities that the issuers will use during this time to raise capital. Issuers that qualify as well-known seasoned issuers (wksi) file an unlimited shelf every three years to raise capital. Shelf registrations allow corporations to defer the sale of securities after registration until funds are needed or market conditions are favorable. Although, shelf registration permits a corporation to place the sell of shares on standby, it must still file the required annual and quarterly reports to the SEC.
Capital market activity relative to the shelf is called a “takedown.” Takedown is a term that refers to underwriters taking securities off the shelf. For example, a company files a five billion dollar shelf and later decides to sell one billion dollars worth of investment grade bonds. In this case, an underwriter has performed a one billion dollar shelf takedown and has left four billion dollars remaining on the shelf.
Shelf registrations and takedowns are a common occurrence in the market place, and represent a substantial portion of capital markets activity. It is important for bankers to keep track of shelf registrations and takedowns so that they know the value and or the types of securities available for issuance. For the investment banking divisions of banks, keeping track of shelf registrations and takedowns is a very difficult and time consuming undertaking. Couple this with analyzing the company's stock performance relative to this activity and a considerable outlay of resources is required.
Accordingly, there is a need for a software and database system that can populate a database table with the appropriate data to be used in an application tracking and analyzing these financial transactions.